Member Info for OofyProsser

Mirasol: perhaps they are thinking that ‘erbert Has agreed to take a board position at a profitable Gulf of Mexico oil/gas Company that is looking for a reverse takeover partner with an AIM listing. Huge upside. No hint of default. This will come back as a ten-bagger.

Or maybe not. As Sean Connery once said, “I musht be dreaming”.

Where does this leave Carlos? If Mr.‘Erbert’s departure has anything to do with the issue of solvency and the responsibilities of directors in this regard, there could be further developments, what?

I’d say this is the most comical development since the terms of the purchase of Saltfleetby Energy were announced!

Excellent amusing post, Ocelot.

Didn’t they tell you this was happening?

Stockraiser: so, in contrast to the incorrigible onetomany, you accept that Angus is in default.

Yes, Angus is undoubtedly in consultation with Trafigura. I have not suggested that the latter has pulled the plug yet. I do question, however, why the letter have given Angus two short-term deadlines. They are clearly in the driving seat and Angus will have to do as it is told. I am also at a loss to understand how Angus will acquire profitable, producing assets at a discount to their market value. Time will tell.

Whatever, Angus is in default currently.

Stock raiser: I don’t understand this. Angus are in default. They can’t pay their creditors, they haven’t got enough money.

Ocelot: yesterday, you wrote this:

“ they are not talking of an immediate cash injection but of transforming the cash generating capacity of the company through the purchase of "a group of producing assets".“

So where are they planning to get the cash to enable them to purchase a group of producing assets?

Angus had better meet the full quantity specified in the forward contracts then. Failure to do so while the spot price is higher than the contracted price will land them in financial difficulties again.

WG818: I’ve been surprised since Angus took over SEL that shareholders have not asked questions about the price that was paid. It wasn’t long afterwards that the new management was installed.

I sometimes wonder whether he’s kind enough to share his windfall from the sale of SEL.

WG818: the 2024 Accounts also showed trade creditors payable within 12 months £3mm.+ in excess of trade debtors. And what will Mr. Forrest think of being paid in suspended shares (at a discount)?.

A loss is OK as long as you’ve got reserves with which to meet your financial obligations. Not only had Angus got insufficient reserves, it’s also clear its financial advisers ruled out the usual placing. Presumably because the shortfall was too large and there was no prospect of an improvement.

Well, the thing is, the secondhand plant was not, in the event, an option. Whereas the £20 million bank loan was, if the Earl of Lucan is to be believed. The outcome would have been the same - huge revenues in the first year, the bank loan repaid and a reasonable level of profit from which to pay dividends to shareholders thereafter.

Mirasol: yes, I agree about the CPRs. The Wingas one was better!

I think a bigger mistake was turning down a standard bank loan of £20mm a year before they took the Mercuria loan. They would have been home and hosed. No hedges and all the money from those exceptionally high gas prices in March/April. The poet Whittier had it right.

Sufc: you need to step back and add it all up. I didn’t mention the royalty, nor the payments due to Mr. Forrest (whom Angus have paid in discounted shares so far: whether he’ll be prepared to accept shares while they’re suspended, we’ll have to see). Nor the costs at their legacy assets. They’ve already said they’ll need another well or two at Poundland. They can’t afford these, of course but it doesn’t bode well for future production. They lost money last year, when production was higher and before the costs of the third compressor.

They’re in default. They can’t keep up with their interest and capital repayments.

HITS: not to mention £3.6mm of running costs, which includes ‘Erbert’s £260,000 salary. That was, of course, last year, since when they've incurred millions on installing the new compressor and significant sums on trying to get it to work properly. They’ll need to keep Poundland going though, or they’ll risk being required to de-commission it. They’re responsible for the pipeline now, too, following that very odd deal to buy Saltfleetby Energy.

Onetomany: What are you talking about? The low market capitalisation is the result of sensible shareholders exiting. It’s not a metric that suggests the shares are cheap! Low-priced, yes. Cheap, no.

If there is no rto, receivership will probably loom. If there is an rto, an eye-watering dilution of existing shareholders’ interest in the company will be unavoidable.

I shan’t bother much now until the next RNS. Good luck.

Yes, Ocelot, wouldn’t it be marvellous? Let’s all go and get a nice deal like this. That person’s shareholders will be thrilled to have in exchange shares in a money drain with massive liabilities and an increasingly rapidly depleting asset. And all this for an AIM listing? The red herring has already started to smell bad.

Onetomany: definition of being in default, from the Merriam-Webster dictionary:

“ having missed a payment that is due.

‘She's in default on her loan.’”

Angus is in default, whatever you may think or write on here. What they are discussing is a way of getting Angus out of default. The Gulf of Mexico rto is what the French refer to as un hareng roux.

Trafigura, in possession of charges on Angus’s assets, is in the driving seat. Angus will have to take its medicine.

Whoever is pulling the strings here, there’s nothing really worth having in Angus for a j-v partner, is there? Trafigura is in the box seat and they can have little interest in protecting the interests of Angus shareholders, who appear likely to experience a very short haircut. Snip snip.